STATE-RUN pension fund Social Security System (SSS) saw its profit more than halved as of September due to a surge in benefit payouts after the pension hike, it said in a statement.

Netting out total revenues from total expenses, the state pension fund’s net profit fell 56.58% to P11.91 billion in the first nine months of the year, from the P27.43 billion recorded in the same months of 2016.

SSS’ total revenues as of September SSS grew 10.72% to P146.17 billion from the P131.97 billion posted in the same period last year.

Total expenditures for the January-September period, meanwhile, stood at P134.26 billion, surging 28.43% from the P104.54 billion recorded in the same period a year ago. Of this amount, operating expenses declined by 0.05% to P6.48 billion.

The rise in expenses was due to the surge in benefit payouts after the implementation of the first of two P1,000 pension hikes approved by President Rodrigo R. Duterte in February.

SSS President and Chief Executive Officer Emmanuel F. Dooc said benefit payments grew 30.31% to P127.78 billion as of September from P98.06 billion in the same nine months last year.

“The increase in benefit payouts was higher due to the release of the P1,000 additional benefit amounting to P24.03 billion from January to October 2017 and the 3rd tranche of pension adjustments arising from the unlumping of 1985 to 1989 contributions amounting to P72.43 million,” Mr. Dooc said in the statement.

The SSS said the third tranche of pension adjustments for retirees, death and disability pensioners prior to May 24, 1997, or the implementation of the Republic Act 8282 or the Social Security Law, was already credited to accounts of qualified pensioners on June 29 this year.

Broken down, SSS payments for death benefit payments grew the fastest, seeing a 43.51% surge to P40.17 billion at end-September. This was followed by releases disability benefits at a 42.8% increase to P4.64 billion.

Retirement benefit payouts meanwhile grew 26.75% to P73.65 billion in the same period, while sickness benefits were up 8.47% to P1.95 billion, and funeral payments saw a 6.09% rise to P2.85 billion.

Rehabilitation and medical services benefits, however, declined 20.36% and 13.47% to P1.1 million, and P9.7 million, respectively.

Moreover, members’ contributions, representing 81.8% of total revenues, amounted to P119.5 billion at end-September, up 11.31% from P107.36 billion in the same period in 2016.

“[C]omponent-wise, collections from the employed sector registered the biggest amount at P103.1 billion, followed by voluntary paying members at P10.98 billion, and self-employed at P5.42 billion,” he added.

Investment and other income for the nine-month period, which represents 18.2% of total revenues, was 8.16% higher at P26.62 billion, according to SSS.

Mr. Dooc said the pension fund’s financial position remained stable with total assets of P511.72 billion, 7.4% higher from P476.40 billion due to the increase in investments and cash equivalents.

Meanwhile, SSS’ investment reserve fund as of September was recorded at P490.32 billion, 5.6% higher than the P464.42 billion recorded at end-2016.

Currently, SSS is pushing legislation to amend its charter, which would enable it to raise the member salary credit ceiling to P30,000 by 2022.

Such a move would raise member contributions to offset the two-pronged pension hike without necessarily raising the current 11% contribution rate — which was said to be a “last option,” Social Security Commission Chairman Amado D. Valdez said last month. — Elijah Joseph C. Tubayan

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